Join Date: Aug 2005
Location: Ellicott City, MD
It just makes you all warm and fuzzy when you get a letter from the IRS saying they think you screwed up your taxes and owe them $2,500 in back taxes and interest.
Turns out no, I misreported $80 (I didn't receive a 1099-Int and a 1099-D), so I under paid by $12, checks on the way.
What it looks like is they had a newbie keying the information from my return (filed on paper, not hand written, printed so legibility isn't an issue here). What gets me is it wasn't simply missing all of the information from my Schedule D continuation sheet for long term capitol gains, it was missing SOME, not ALL, of the short term capitol gains information from my Schedule D (not the continuation sheet, the Schedule D itself). Everything else from my Schedule D they got.
Oh, also some how they though my mortgage interest was $115 instead of $1150. Again I think someone missed a digit when keying something.
Really pissing annoying and talk about high blood pressure getting that letter and figuring out what THEY screwed up (okay, technically I did as well, but I never received the forms for the amount that I had not reported and we are talking $12 owed, not $2,500 like they claim). At least it is relatively easy to resolve mailing them the information showing why they are wrong. Or at least I hope like hell it proves to be easy (IE they actually read the bloody forms this time).
Two things piss me off the most though.
1) this was my 2007 return and I just got the notice. I get things can take awhile to get reported to the IRS from businesses...but it doesn't take a 18 months to report them except in very, very rare cases (the deadline just like the tax deadline is April 15th and there are penalties to business for reporting information late).
2) 30 day deadline. I get there has to be some sort of deadline and 90 or 120 days or whatever is ridiculous, but a 45 day deadline wouldn't be unresonable. What if I had been on vacation or away on business for a couple of weeks? I might get back and only have 5-10 business days to gather all of my evidence (which who knows, I might have to call or write to a business to get a copy of a 1099 or something) and mail it to them. I know they offer extensions, but not without the interest piling up and possible penalties even though you get an extension. Sure it has taken me only a day to get everything together, but I can see how it could take an average person several days or even several weeks to figure it all out.